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Forex Recap: EUR/GBP, USD/CHF and AUD/USD

Let's take a look at a few pairs in consolidation.

EUR/GBP is trading in the middle of last week's range, between 0.8245 and 0.8313. This range is also just above 61.8% retracement of the 0.8157 to 0.84 rally, which was a key one because it broke above falling trendlines, and thus provided a bullish signal.

(eur/gbp 4h chart 4/7)

A break above 0.8315 can strengthen the bullish signal from early March. A break below 0.8245 however suggests that was a false break, and revives a bearish outlook, at least with 0.8208, then 0.8157 as possible short-term targets.

The USD/CHF 4H chart is also in a throwback after a bullish swing that broke above a falling trendline. It is almost back to the recent rising channel support, which would be at 0.8850. The stochastic is nearing oversold area so look out for a bullish swing once we get stochastic crossover to the upside.

AUD/USD signaled a bullish continuation last week after it formed a false double top - instead of a bearish correction, it rallied to a new high just above 0.93. Thus look for a bullish continuation after the current bearish correction swing is over. One way we might anticipate that is to look for the 4H stochastic to bottom out and cross back up.

(AUD/USD 4H chart

We can say there is a range between 0.92 and 0.9310. A break above 0.93 should continue the uptrend, while a break below 0.92 shelves the uptrend for a period of consolidation/correction.